The company, which operates Domino’s Pizza outlets across Australia, New Zealand, Europe and parts of Asia, is now linking short-term executive bonuses to driver safety in an attempt to reduce incidents. This change may also increase pressure on management during a period of underperformance.
The initiative comes in response to driver fatalities in Japan and the Netherlands during the 2025 financial year, which triggered an internal review and the rollout of safety measures. Domino’s has faced weak earnings growth and greater scrutiny of its operations, making safety an urgent issue. A newly introduced safety modifier gives the board the ability to reduce bonuses if a delivery worker dies or suffers a serious injury requiring extended hospitalisation. This marks an uncommon example of directly linking executive compensation to workforce safety.
In the aftermath of the fatal incidents, Domino’s implemented GPS tracking devices, high-visibility clothing and mandatory training for all delivery drivers across its markets. Despite these efforts, the company continues to face financial challenges. Revenue dropped by 3.1% to $2.3 billion in FY25 and the business recorded a $3.7 million loss, leading to the closure of 312 stores worldwide. Of these closures, 233 were in Japan.
This strategic change is seen as a move to rebuild confidence among investors and employees. By making incentives dependent on driver safety, the company aims to enhance accountability and show greater commitment to staff welfare. However, with ongoing leadership changes and a steep decline in share value from over $160 during the pandemic to $14.81, Domino’s faces a long path to restoring its reputation for performance.
